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السيد / رولف كيرست Mr. Rolf Gerhard Kirst. المنظمون. With reputation comes responsibility. Benefits by Franchise in Saudi Arabia. How to implement franchise know-how What needs to be done to development a franchise friendly environment for SME’s. Introduction Rolf Gerhard Kirst.

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slide1

السيد / رولف كيرست

Mr. Rolf Gerhard Kirst

المنظمون

with reputation comes responsibility

With reputation comes responsibility

Benefits by Franchise in Saudi Arabia

  • How to implement franchise know-how
  • What needs to be done to development a franchise friendly environment for SME’s
introduction rolf gerhard kirst
IntroductionRolf Gerhard Kirst
  • Personal introduction
    • Independent entrepreneur since 1977
    • Experience in Cooperation since 1982 in the travel industry
    • Franchise experience since 1990 with travel agencies
    • Regional Master for Uniglobe Travel since 1994
    • Board member of the DFV since 1999
    • Board member and Vice President of the EFF since 2001
    • Member of WFC
how to implement franchise know how in a country
How to implement franchise know-how in a country
  • Prerequisites by the government for SME‘s and Franchise
  • Building an association versus private consultancy
  • PR and marketing to make Franchise attractive
  • Financing
  • Training (transfer franchise know-how to officials, franchisees, franchisers)
  • Consulting firms for developing local concepts
  • Recruitment agencies for franchise sales
different understanding in the middle east
Different understanding in the Middle East
  • Taking an international franchise licence here means to get exclusivity rights
  • Representing a brand and open a number of stores
  • Sub-franchise is mostly unknown or rare
the big challenge
The big challenge
  • Franchise in the Middle East is in the hand of a few rich families
  • All outlets are managed by the main company
  • Why not sub-franchise ?????
the enormous potential

Middle East

By Age Group

Middle East

Below 10 yrs.

10 - 19 yrs.

20 - 29 yrs.

30 - 39 yrs

40 - 49 yrs.

50 -59 yrs.

Over 60 yrs.

Total

Population

22,128,000

18,844,000

15,866,000

12,584,000

8,059,000

4,120,000

3,753,000

85,156,000

(%)

26.0

22.1

18.4

14.8

9.5

4.8

4.4

The enormous potential
  • See demographics
why sub franchise
Why sub-franchise
  • Big families - but not every son can be fathers heir
  • Young people need a vision and want to be self employed even if in smaller scale
  • A big crowd of potential SME‘s
  • The range for big companies is limited
understanding
Understanding ...
  • The benefits of sub-franchising
  • To keep the business in local hands
  • SME‘s positive influence to the economy
  • To meet local employment obligations

The big companies should reconsider their strategy

the situation today in ksa
The situation today in KSA
  • The Saudi government wants to establish Riyadh as the capital of franchise in the Middle East
  • What needs to be done to development a franchise friendly environment for SME’s
the european model as a basis
The European model as a basis
  • The Code of Ethics
  • Self regulation by the market
  • Unidroit - Model law versus self regulation
  • The role of national associations and the EFF
pre requisits by the government for sme s and franchise
Pre-requisits by the government for SME‘s and Franchise
  • Low entry barriers for SME‘s
  • Support with external know-how
  • Fonds for financing
  • Recognition by the government and the public
building an association versus private consultancy
Building an association versus private consultancy
  • First step by the Chamber of Commerce
  • Second step by Private Consultants
  • Third step building an associationdominated by entrepreneurs
pr and marketing to make franchise attractive
PR and Marketing to make Franchise attractive
  • With support of the government the press will do his job
  • An association or Chamber of Commerce will promote Franchise in general and impart franchise know how
financing
Financing
  • Bank loans
  • Private investment
  • Government fonds
training
Training

Transfer franchise know-how to officials, franchisees, franchisors

  • Seminars
  • Exhibitions
  • Info trips to other countries (Europe, USA)
  • Special training courses
    • Business plan
    • Documentation etc.
consulting firms for developing local concepts
Consulting firms for developing local concepts
  • Local multi unit concepts want to expand with franchise
    • How to create the franchise model
    • Manuals
    • Training
    • Communication concept
    • Marketing and CI
recruitment agencies for franchise sales
Recruitment agencies for franchise sales
  • Direct recruitment
  • Recruitment agencies
    • Sales material
    • Marketing for franchise sales
    • Application process
    • Finding the right partners
    • Legal documents
the need of a franchise competence center
The need of a Franchise Competence Center
  • General Franchise consulting
  • Franchise development
  • Franchise recruitment
  • Franchise financing
  • Franchise marketing
  • Franchise training
conclusion
Conclusion

There is a lot to do

Tackle the challenge

It‘s a long way to the capital of franchise

slide21

السيد / رولف كيرست

Mr. Rolf Gerhard Kirst

  • المنظمون